Legal Question in Bankruptcy in California

I along with 3 brothers inherited a house that we're renting out as income property. One brother is filing for personal bankruptcy and wants the remaining brothers to buy out his portion for appraised value. We offered at 1st appraised level but when additional activity caused a reevaluation, the value came in higher. The new value was above what the rest of us were willing to pay. He wasn�t will to accept less than the 2nd appraised level. The rest of the "partners" don't want to sell the house and will be willing to take on another minority owner (assuming he can find someone willing to buy a 1/6th stake at full appraised value). Can a bankruptcy proceeding force the remaining majority owners sell the house to get at the 1/6th value for my brother?


Asked on 4/27/10, 2:20 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

It sounds like your brother is filing for Chapter 7. If so, the court appoints a trustee to liquidate any of your brother's assets that are not protected by the allowable exemptions.

The trustee has no great rights to the property that your brother. While it is possible that the trustee could sue to for the sale of the property in a partition lawsuit, the trustee would more likely prefer to negotiate a settlement with the co-owners of the property.

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Answered on 5/03/10, 11:09 am


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